HAPPY TUESDAY TO THE STREET
Elon Musk declared yesterday that he'll give every kid in America a share of SpaceX (SPCX) next year. Sounds generous… until you read the fine print.
If this offer materializes at all — and given Musk’s track record of overpromises, that’s a big if — those shares would likely land in a Trump Account. In that case, families would be unable to refuse it, and in most cases, unable to sell it for five years, even if the company hits a rough patch.
Congrats, kids: diamond hands, by federal mandate.
🟩 | US stocks rose today as upbeat earnings lifted the industrials sector, while oil prices continued to slide.
📈 | One Notable Gainer: Dream Finders Homes (DFH) rose after closing its Beazer Homes acquisition.
📉 | One Notable Decliner: General Motors (GM) fell despite beating Q3 estimates and unveiling a $20B buyback.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
HASBRO, GE AEROSPACE, NORTHROP GRUMMAN
📈 | Hasbro (HAS) topped Q3 estimates and raised its full-year revenue growth outlook.
📉 | GE Aerospace (GE) posted lighter-than-expected free cash flow despite raising 2026 guidance.
📈 | Northrop Grumman (NOC) beat Q3 earnings estimates, though revenue came in just shy.
📉 | Steel Dynamics (STLD) missed Q3 earnings estimates despite a revenue beat.
📈 | Equifax (EFX) beat Q3 earnings estimates despite trimming its 2026 revenue guidance.
Tomorrow's Trade Idea, Today
WHAT A TANGLED WEB, COREWEAVE
Stock Spotlight
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Return to Sender
HSBC isn't buying the CoreWeave dip. It's selling it.
The bank holds a Reduce rating on the neocloud name, making it a rare bear on a stock Wall Street loves, particularly after its sharp sell-off in recent days due to credit concerns.
Borrowed Time
Analyst Abhishek Shukla's core gripe: CoreWeave's projected return on invested capital through 2030 trails its cost of borrowing. In his view, the more it spends, the more value it burns.
The company has piled on more than $51B in debt to fund its AI build-out. Last week, credit default swap spreads hit distress levels and the stock tumbled.
Shukla expects more pain. Rocky debt markets and cooling large language model revenue are deepening structural worries for neoclouds, per HSBC.
The Bull Pen
Where Shukla sees a trap hole, most others see a strong bargain.
Goldman Sachs (GS) upgraded the stock to Buy, arguing asset-backed loans keep borrowing costs contained. Deutsche Bank (DB) finds no company-specific reason for the sell-off, citing close ties to Nvidia (NVDA), Meta (META), and OpenAI. And Truist (TFC) says the stock could nearly double from current levels, as price hikes are outrunning rising chip costs.
Of the 45 analysts covering CoreWeave, 32 rate it a Buy or Strong Buy. HSBC is betting that, for the foreseeable future, the forecast will remain cloudy.
Do you own any shares of CoreWeave (CRWV)?
OVERHEARD ON THE STREET
🏠 | September pending home sales hit an all-time low, sliding 7.3% as mortgage rates top 7%.
✈️ | Boeing (BA) is set to win US approval for its 737 Max 10 after years of delays.
🧀 | A New Jersey cheese importer sued to overturn President Trump's 50% tariffs on Canadian goods.
🚜 | Separately, Trump announced an $8B bailout for farmers hit by high fuel and input costs.
🛒 | Walmart (WMT) launched a $120-a-year joint membership with Sam's Club, nearly $100 less than the cost of buying both.
MONDAY'S POLL RESULTS
Do you own shares of Datadog (DDOG)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “Great company with important line of products!”
🐻 Nope, not interested — “Datadog — no. Georgia Bulldogs, yep, this year.”
